Would you do this deal?

[Peyton Millirons]

What do you think of this deal? 

This a new construction ground up development. 

Location : Panama City, FL 

Info : 5 lots, SFR on each lot.

Cost : Cost to build is $200k per house (Builder owns the land and is looking for construction financing partner) 

Return : Return would be 10% in 7 months once the house is sold

Risks : Build shouldn't** but could take longer than 7 months. Builder is able to get all trusses and material now with no wait so that will make the timeline be somewhat on track. (Nothing is perfect in construction)

Pros : New construction for residential homes in this area has taken a steep decline. Once these homes get put on the market there will not be much competition in terms of new construction. The builder owns the land. Investor could finance one build or all 5 at once, possible return of $100,000 in 7 months. These lots are ready to build on. 

Build : The homes will be 3bd/2ba or 4bd/3ba all around 2000 sqft. 

Interested to see what everyone thinks. 

[Eliott Elias]

How is "new construction has taken a steep decline" a pro? You have more to loose than the builder. Include this in your cons: what the market will look like in 7 months.